After fire, Philadelphia Energy Solutions to permanently shut oil refinery

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Philadelphia refinery could close for good. More here:

PHILADELPHIA - Philadelphia Energy Solutions will seek to permanently shut its oil refinery in the city after a massive fire caused substantial damage to the complex, the company confirmed on Wednesday, a day after sources told Reuters about the plans.

Workers at the complex were leaving the refinery on Wednesday, some escorted by security, others alone, carrying boxes with personal belongings to their cars, with several confirming they had been laid off. Employees have been instructed to immediately begin the process of mothballing units, sources familiar with the company’s plans said.

The 335,000 barrel-per-day complex, in a densely populated area in the southern part of the city, erupted in flames early on Friday in a series of explosions that could be heard miles away. The cause of the fire remained unknown, though city fire officials said it started in a butane vat around 4 a.m. EDT . It destroyed a 30,000-bpd alkylation unit that uses hydrofluoric acid to process refined products. Had the acid caught fire, it could have resulted in a vapor cloud that can damage the skin, eyes and lungs of nearby residents.

It went through a bankruptcy process last year to reduce debt, but cash on hand dwindled even after it emerged from bankruptcy last summer. The blaze was the second in two weeks at the complex, spurring the mayor to call for a task force to look into the cause and community outreach in the wake of the incidents. That task force will now be retooled to focus on helping the company transition the site of the refinery and supporting employees affected, Kenney said in his statement.

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